Goldman Sachs staff began celebrating a record year for bonuses today as its rival Lehman Brothers awarded Richard Fuld, the bank's chief executive, a $35 million Christmas present.

Thousands of bankers on both sides of the Atlantic at Goldman were told today of their share of what is expected to be an $18.8 billion bonus pool, worth on average $600,000 for each of their near 30,000 staff world-wide.

Last year Goldman paid out $16.5 billion in total bonuses, worth on average $640,000.

Despite writing-off about $1.7 billion of loans, Goldman's profits for the first nine months of this year reached $8.4 billion, up one third on those achieved over the same period last year. Full year figures due out next week should show profits reaching a record of $11 billion.

Total head-count has increased since last year but it is thought that heads of investment banking at Goldman will be taking home payouts worth $10 million each.

Lehman informs its 28,000 staff tomorrow of their bonus pay-outs. The total pot is expected to reach about $9.4 billion, worth on average $335,000 per employee.

Top earners at Lehman normally take home bonuses as large as their rivals at Goldman and this year is expected to be no different, insiders told Times Online.

Lehman revealed that it has already awarded its Mr Fuld, aged 61, $35 million in stock for 2007. Five other Lehman executives received a total of $58 million in stock for 2007, including $29 million for Joe Gregory, the bank's president, and $9 million for vice chairman Thomas Russo.

Tomorrow, the bank reveals its fourth-quarter and full-year results. Lehman is expected to announce record $4.1 billion earnings for 2007.

Despite being the biggest American underwriter of mortgage securities, it has so far reported fewer losses than its competitors following the crisis in the US sub-prime mortgage market.

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